Slide 1: Second Quarter 2023 Earnings Supplement
Second Quarter 2023 Earnings Supplement August 3, 2023 | TARGA RESOURCES CORP.
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fac
Slide 3: Q2 2023 Update
Q2 2023 Update Record Permian, NGL pipeline transportation and fractionation volumes >> Operational execution 〉 Record Permian natural gas inlet volumes of 5.1 Bcf/d 〉 Record NGL pipeline transportation and fractionation volumes 〉 Anticipate continued ramp in Permian volumes in 2H23, driving increme
Slide 4: Operational Performance – Gathering & Processing Segment
Operational Performance – Gathering & Processing Segment 2Q23 Highlights Field G&P Natural Gas Inlet Volumes and NGL Production Field G&P Natural Gas Inlet Volumes 6,400 900 ▪ Record Targa volumes in the Permian Basin attributable to continued 5,600 1,314 800 1,261 1,271 robust activity levels acros
Slide 5: Operational Performance – Logistics & Transportation Segment
Operational Performance – Logistics & Transportation Segment 2Q23 Highlights NGL Pipeline Transportation, Fractionation, and LPG Export Services ▪ Record NGL pipeline transportation and fractionation volumes driven by higher supply primarily from Targa’s Permian G&P systems NGL Pipeline Transportati
Slide 6: Financial Performance – 2Q 2023 vs. 2Q 2022
Financial Performance – 2Q 2023 vs. 2Q 2022 18% increase in adjusted EBITDA(1) G&P segment operating margin increased $28 million(2) L&T segment operating margin increased $86 million + Higher natural gas inlet volumes and higher fees + Higher NGL pipeline transportation and fractionation volumes +
Slide 7: Financial Performance – 2Q 2023 vs. 1Q 2023
Financial Performance – 2Q 2023 vs. 1Q 2023 16% decrease in adjusted EBITDA(1) G&P segment operating margin decreased $36 million(2) L&T segment operating margin decreased $121 million − Lower natural gas and NGL prices − Lower marketing margin + Higher Permian natural gas inlet volumes driven by co
Slide 8: Business Mix – 2Q 2023
Business Mix – 2Q 2023 Field Gathering & Processing Business Mix – Segment Logistics & Transportation Operating Margin(1) Operating Margin Operating Margin 100% 100% 75% 75% 50% 55% / 45% 50% 25% 25% 0% 0% 1 2Q22A Central Marketing & Other(2) Gathering & Processing Logistics & Transportation Badland
Slide 9: Reconciliations
Reconciliations Q2 2023 EARNINGS SUPPLEMENT PRESENTATION 9
Slide 10: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes the Company’s non-GAAP financial measures: adjusted EBITDA and adjusted operating margin (segment). The following tables provide reconciliations of adjusted EBITDA and adjusted operating margin to their respective most directly comparable GAAP m
Slide 11: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Three Months Ended, June 30, 2023 March 31, 2023 June 30, 2022 (in millions) Reconciliation of Net income (loss) attributable to Targa Resources Corp. to Adjusted EBITDA Net income (loss) attributable to Targa Resources Corp. $ 329.3 $ 497.0 $ 596.4 Interest (income)
Slide 12: Non-GAAP Measures Reconciliation
Non-GAAP Measures Reconciliation Three Months Ended, June 30, 2023 March 31, 2023 June 30, 2022 (in millions) Gathering and Processing Segment Operating margin $ 502.5 $ 538.4 $ 474.7 Operating expenses 189.8 181.4 141.4 Adjusted operating margin $ 692.3 $ 719.8 $ 616.1 Logistics and Transportation
Slide 13: Non-GAAP Measures Reconciliation – Full Year 2023E
Non-GAAP Measures Reconciliation Full Year 2023E (in millions) Reconciliation of Estimated Net Income attributable to Targa Resources Corp. to Estimated Adjusted EBITDA Net income attributable to Targa Resources Corp. $ 1,440.0 Interest expense, net 700.0 Income tax expense 400.0 Depreciation and am
Slide 14: General Inquiries / Corporate Headquarters
GENERAL INQUIRIES/CORPORATE HEADQUARTERS 811 LOUISIANA STREET, SUITE 2100 HOUSTON, TX 77002 Targa is a leading provider of midstream services as one of the largest independent midstream infrastructure PHONE: 713.584.1133 companies in North America. Our operations are critical to the efficient, safe,